The Philippine government encourages foreign investments providing significant employment opportunities, improving resource productivity, increasing volume and value of exports, and providing a foundation for future development of the economy. Investment-related rules have been liberalized to facilitate entry of investments.

Mindanao and Palawan strategically located in the southernmost part of the Philippines, Mindanao is considered the country's gateway to ASEAN through the BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines- East ASEAN Growth Area). Equidistant to the eastern portions of Indonesia, Malaysia, and Brunei Darussalam, Mindanao proves to be a potential major transshipment point and trade center in the region. With the revitalization of BIMP EAGA, Palawan and Mindanao's economic activities are seen to expand.

An attached agency of Department of Trade and Industry (DTI), the Board of Investments (BOI), is the lead agency responsible for the promotion of investments in the Philippines. BOI assists Filipino and foreign investors in possible business ventures in the booming Philippine Industry sectors such as food processing, construction, metal products, telecommunications, power and infrastructure projects among others.

The Mindanao Economic Development Council (MEDCo) is the lead agency in coordinating the socio-economic development of Mindanao through the efficient and effective provision of technical and administrative support to interregional, Mindanao-wide and Brunei Darussalam Indonesia The Philippines-East ASEAN Growth Area (BIMP-EAGA) related organizations.

The Provincial Government of Palawan assists investors through the Provincial Economic Enterprise Development Office (PEEDO) by offering investment promotions, business assistance through the Technology Livelihood and Development Center-Palawan.

Steps in Doing Business

Tax Structures and Tax Agreements on Trade and Investments

Pursuant to 1987 Omnibus Investments Code (Executive Order 226) enterprise is entitled to the following incentives, subject to terms and conditions:

1. Income Tax Holiday of 6 yrs for pioneer firms and 4 year for non-pioneer firms
2. Tax credit on raw materials, supplies and semi manufactured products
3. Additional deduction for taxable income for labor expenses (cannot be simultaneously enjoyed with ITH incentives)
4. Additional deduction for taxable income for necessary and major infrastructure works (cannot be simultaneously enjoyed with ITH incentives)